"In the second quarter, we continued to improve our operating profit. Significantly better margins and lower costs compensated for lower sales. The savings program launched in Q4 has now reached full effect, and the gross margin has been strengthened by a changed product mix with an increased share of sales of consumer products. In Wood Protection, we continue the transition towards a license-based business model, which creates better conditions for scalability and strengthens our position as a pure green chemical company. At the end of the quarter, we also carried out a new share issue that provided the company with approximately SEK 33 million, which reduces our debt and strengthens our financial position."
Translation from CEO Mårten Hellberg's comment on the interim report.
Second quarter, 1 April - 30 June 2026
The Group compared to 2025
» Net sales amounted to SEK 22.1 (30.0) million
» Gross margin amounted to 28.6% (21.6%)
» Operating profit (EBIT) amounted to SEK -2.1 (-4.7) million
» Cash flow from operating activities amounted to SEK 1.8 (7.7) million
First half year, 1 January - 30 June 2026
The Group compared to 2025
» Net sales amounted to SEK 49.4 (65.4) million
» Gross margin amounted to 29.6% (23.6%)
» Operating profit (EBIT) amounted to SEK -1.8 (-6.8) million
» Cash flow from operating activities amounted to SEK 1.5 (-2.8) million
A word from the CEO
Improved operating profit and strengthened financial position
In the second quarter, we continued to improve our operating profit. Significantly better margins and lower costs compensated for lower sales. The savings program launched in Q4 has now reached full effect, and the gross margin has been strengthened by a changed product mix with an increased share of sales of consumer products. In Wood Protection, we continue the transition towards a license-based business model, which creates better conditions for scalability and strengthens our position as a pure green chemical company. At the end of the quarter, we also carried out a new share issue that provided the company with approximately SEK 33 million, which reduces our debt and strengthens our financial position.
Financial performance second quarter
During the second quarter, the Group had a sales loss of -26% (-23%) to SEK 22.1 (30.0) million. The decline was mainly due to our construction-related products in the Wood Protection business unit, which is affected by continued weak demand in Sweden. In the Consumer Applications business unit, the decrease is mainly explained by the discontinuation of an unprofitable customer. At the same time, sales of our binders increased in the Nonwoven Technologies business unit.
Our lower production costs together with a changed product mix strengthened the gross margin to 29% (22%) despite lower capacity utilization. At the end of the second quarter, the previously communicated savings program had reached full effect. Overall, operating profit strengthened to SEK -2.1 (-4.7) million despite lower sales, and our cash flow from operating activities strengthened during the first half of the year to SEK 1.5 (-2.8) million.
At the end of the quarter, a new share issue of SEK 33 million was carried out, where the proceeds were primarily used to reduce debt. This is expected to reduce our interest expenses by approximately SEK 2-3 million by 2027. Together with an expanded savings program that was initiated in the second quarter, the Group's costs will be reduced by approximately SEK 5-6 million by 2027 from the current level.
Consumer applications
For the Consumer Applications business unit, sales decreased by -27% (-9%) to SEK 9.6 (13.3) million. The drop came mainly from the previously announced discontinuation of a private label customer. Our car care business (private label customer) was also weak during the quarter. The OrganoTex brand, on the other hand, continued to perform well with sales growth of 29%. Our newly launched biobased product OrganoTex ShoeCare Odor remover has been well received by customers and contributed to growth. We are proud that the product won the Scandinavian Outdoor Award, where the jury specifically stated the product's effectiveness combined with its good environmental profile as a motive. New customer sales for the BIOkleen brand also developed well with Beijer Byggmaterial as a new dealer in Sweden.
Nonwoven technologies
Sales for the Nonwoven Technologies business unit increased by 11% (-25%) to SEK 6.7 (6.0) million. At the beginning of the quarter, we announced that we will lose a major industrial customer that accounts for about 25% of the Group's sales, which will reduce the business unit's revenues from July. At the same time, customer projects in new applications continue to develop positively, with a focus on areas such as food absorbents, washcloths and tea bags.
Wood protection
For the Wood protection business unit, sales decreased by -45% (-46%) to SEK 5.8 (10.7) million. We are now actively working to find a license partner, in the form of a wood processing company, for the production and sale of our modified timber. With the new business model, we will deliver wood protection chemistry and our technology platform to wood treatment companies, which then process the wood and are responsible for sales to the construction industry. This will create a uniform business model for the Group and a clearer position as a pure green chemical company.
An important milestone in enabling such a license deal was achieved during the quarter when we received excellent results from our five-year field study (CEN/TS 12037) conducted by the Danish Technological Institute in Malaysia and Denmark. Timber modified with our wood protection technology showed no degradation of rot at any of the sites (level 0 on a scale of 0-4) while the untreated wood reference is completely degraded (level 4) after only three years in Malaysia.
At the beginning of the third quarter, in order to reduce costs for the business unit and to prepare for the new licensing model, we initiated the dismantling of a large part of the organization in our part-owned company OrganoWood AB. The change is expected to result in an annual cost reduction of approximately SEK 8 million for the Group and reach full effect by the end of the year. OrganoWood AB will thereafter have a cost base of approximately SEK 3 million consisting of a technical support function and non-cash depreciation of intangible assets. Sales will be greatly reduced, as we will only sell wood preservatives in the future, but at the same time both profitability and future scalability will improve.
Outlook
Ahead of the autumn, we are entering an important phase where we continue to implement our strategic transition and strengthen the conditions for long-term profitable growth. We are actively working to compensate for the loss of revenue from the larger industrial customer, while at the same time drive the transition within Wood Protection towards a more scalable license-based business model. In Nonwoven Technologies, we continue to develop new customer projects, and for our consumer brands we continue to see good opportunities for growth.
When these changes are implemented, we will be a pure green chemical company, in line with our strategic direction for several years. From the current level, we will also have reduced the Group's cost base by approximately SEK 13-14 million and have a more well-diversified customer base. Together with the completed new share issue, this gives us a significantly stronger financial position and better conditions to continue driving sales of our biobased products forward. I would like to thank our shareholders for their trust and our dedicated team for the continued work to develop the company.
Mårten Hellberg, CEO
Contacts
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For more information, please contact:
Mårten Hellberg, CEO
08-684 001 10, marten.hellberg@organoclick.com
About Us
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About OrganoClick
OrganoClick is a Swedish green chemical company, founded in 2006 replacing hidden plastic and harmful chemicals in fiber-based materials with green chemical solutions based on fossil-free raw materials. Based on the company's patented "OrganoClick" technologies, which are inspired by nature's chemistry, OrganoClick develops, produces and markets a range of products with the aim of enabling a green transition. For example, the biobased binder OC-BioBinder for the nonwoven and paper industry, the biodegradable textile impregnation OrganoTex® for consumers and the textile industry, the biocidal-free wood protection technology OrganoWood® for wood treatment companies and the construction industry, as well as eco-labelled maintenance products for home owners under the BIOkleen brand. OrganoClick was founded as a spin-off from Stockholm University and the Swedish Agricultural University and has received several awards for its green innovations, including being named a "Climate Solver" by the World Wide Fund for Nature - WWF. The company is listed on the Nasdaq First North Growth Market and has its headquarters, production and R&D in Täby, north of Stockholm. OrganoClick's Certified Adviser on the Nasdaq First North Growth Market is Mangold Fondkommission AB, tel: +46 (0)8 503 01 551, email: ca@mangold.se.
This information is information that OrganoClick is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 2026-08-12 08:30 CEST.
